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2017 (2) TMI 950 - AT - Income TaxScope of rectification proceedings - whether the exemption granted to the assessee u/s 54 of the Act could be withdrawn in part in the proceedings u/s 154? - Held that:- AO had sought to disturb the claim of exemption u/s 54 of the Act in the proceedings initiated u/s 154 of the Act by resorting to verification of all the facts , investigation into the said facts vis a vis the relevant dates prescribed in the section, whether the reinvestment in AJC Bose Road Property made by the assessee would amount to purchase or construction so as to reckon the time limit prescribed in the statute. All these issues are highly debatable in nature which in our considered opinion, could not be done u/s 154 of the Act. There are both favourable and adverse decisions on the subject mentioned issue for and against the assessee respectively by various high courts as stated supra. These disputes had reached the corridors of various judicial forums and had been debated extensively and hence cannot be construed as a mistake apparent from the record warranting rectification within the meaning of section 154 of the Act. See Oriental Cotton Corporation and Mills Ltd vs CIT [1990 (10) TMI 9 - CALCUTTA High Court]. Thus we hold that the proceedings initiated u/s 154 of the Act to disturb the claim of exemption granted u/s 54 of the Act as bad in law. - Decided in favour of assessee
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